Weekly Retail & Leisure News - 15 August, 2016
July’s BRC sales data
show no sign of a slowdown in household spending following the EU referendum.
The value of online and high street sales rose at the fastest pace for six
months in the four weeks to July 30. The annual growth LFLs value jumped from
-0.5% in June to 1.1% in July while total sales growth rose from 0.2% to 1.9%,
boosted by July’s good weather and heavy discounting by retailers. Especially
strong was the spending by foreigners on luxury items, related to the weaker
pound following the referendum.
British supermarket sales have dipped below £100bn for the first time since
2010, as the price war with discounters Aldi and Lidl continues. The major
grocers’ revenues dropped by 3.1%
to £99bn in Q2, as price deflation in the sector continues to
impact sales values. New competition from online retailers such as Amazon’s
launch of Amazon Fresh will serve to put additional pressure on the grocery
market in the UK.
In other news, furniture chains DFS and ScS have both reported positive sales.
DFS shares jumped to 14.5% after announcing total sales were up 4.8% in the six
months to the end of July, with LFLs up 0.2%. The company claimed that any
adverse impact from June’s Brexit vote is ‘likely to be limited’. ScS,
meanwhile, reported a 14.8% jump in LFL sales in the year to July 30, and
expect profit expectations to remain unchanged despite the Brexit result.
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Director, Head of Retail Research (UK & EMEA)
+44 (0)20 3147 1155
Director, Head of UK Retail & Leisure
+44 (0)20 7318 7838
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